Subdivision 1. Definitions. For the purposes of this section, "commission salesperson" means a person who is paid on the basis of commissions for sales and who is not covered by sections 181.13 and 181.14 because the person is an independent contractor. For the purposes of this section, the phrase "commissions earned through the last day of employment" means commissions due for services or merchandise which have actually been delivered to and accepted by the customer by the final day of the salesperson's employment.
Subd. 2. Prompt payment required. (a) When any person, firm, company, association, or corporation employing a commission salesperson in this state terminates the salesperson, or when the salesperson resigns that position, the employer shall promptly pay the salesperson, at the usual place of payment, commissions earned through the last day of employment or be liable to the salesperson for the penalty provided under subdivision 3 in addition to any earned commissions unless the employee requests that the commissions be sent to the employee through the mails. If, in accordance with a request by the employee, the employee's commissions are sent to the employee through the mail, the commissions shall be deemed to have been paid as of the date of their postmark for the purposes of this section.
(b) If the employer terminates the salesperson or if the salesperson resigns giving at least five days' written notice, the employer shall pay the salesperson's commissions earned through the last day of employment on demand no later than three working days after the salesperson's last day of work.
(c) If the salesperson resigns without giving at least five days' written notice, the employer shall pay the salesperson's commissions earned through the last day of employment on demand no later than six working days after the salesperson's last day of work.
(d) Notwithstanding the provisions of paragraphs (b) and (c), if the terminated or resigning salesperson was, during employment, entrusted with the collection, disbursement, or handling of money or property, the employer has ten working days after the termination of employment to audit and adjust the accounts of the salesperson before the salesperson can demand commissions earned through the last day of employment. In such cases, the penalty provided in subdivision 3 shall apply only from the date of demand made after the expiration of the ten working day audit period.
Subd. 3. Penalty for nonprompt payment. If the employer fails to pay the salesperson commissions earned through the last day of employment on demand within the applicable period as provided under subdivision 2, the employer shall be liable to the salesperson, in addition to earned commissions, for a penalty for each day, not exceeding 15 days, which the employer is late in making full payment or satisfactory settlement to the salesperson for the commissions earned through the last day of employment. The daily penalty shall be in an amount equal to 1/15 of the salesperson's commissions earned through the last day of employment which are still unpaid at the time that the penalty will be assessed.
Subd. 4. Amount of commission disputed. (a) When there is a dispute concerning the amount of the salesperson's commissions earned through the last day of employment or whether the employer has properly audited and adjusted the salesperson's account, the penalty provided in subdivision 3 shall not apply if the employer pays the amount it in good faith believes is owed the salesperson for commissions earned through the last day of employment within the applicable period as provided under subdivision 2; except that, if the dispute is later adjudicated and it is determined that the salesperson's commissions earned through the last day of employment were greater than the amount paid by the employer, the penalty provided in subdivision 3 shall apply.
(b) If a dispute under this subdivision is later adjudicated and it is determined that the salesperson was not promptly paid commissions earned through the last day of employment as provided under subdivision 2, the employer shall pay reasonable attorney's fees incurred by the salesperson.
Subd. 5. Commissions earned after last day of employment. Nothing in this section shall be construed to impair a commission salesperson from collecting commissions on merchandise ordered prior to the last day of employment but delivered and accepted after termination of employment. However, the penalties prescribed in subdivision 3 apply only with respect to the payment of commissions earned through the last day of employment.
1984 c 446 s 3; 1986 c 444
Structure Minnesota Statutes
Chapters 175 - 186 — Labor, Industry
Section 181.01 — Wages Of Minors; To Whom Paid.
Section 181.02 — Salary Or Wages Not To Be Paid By Nonnegotiable Instruments.
Section 181.03 — Certain Acts Relating To Payment Of Wages Unlawful.
Section 181.031 — Employers Not To Accept Consideration For Securing Employment.
Section 181.032 — Required Statement Of Earnings By Employer; Notice To Employee.
Section 181.04 — Assignment, Sale, Or Transfer Of Wages; When Not Effective.
Section 181.041 — Garnishment; Assignment, Sale, Or Transfer Of Wages; When Not Effective.
Section 181.05 — Consent Of Employer To Assignment Required.
Section 181.06 — Assignment Of Wages; Payroll Deductions.
Section 181.063 — Assignment Of Wages, Public Employees.
Section 181.07 — Assignment Of Unearned Wages As Security.
Section 181.08 — Public Service Corporations; Payment Of Wages, Requirements.
Section 181.09 — Recovery Of Wages, Costs.
Section 181.10 — Wages Paid Every 15 Days.
Section 181.101 — Wages; How Often Paid.
Section 181.11 — Discharged Employee Must Be Paid Within 24 Hours.
Section 181.13 — Penalty For Failure To Pay Wages Promptly.
Section 181.14 — Payment To Employees Who Quit Or Resign; Settlement Of Disputes.
Section 181.145 — Prompt Payment Of Commissions To Commission Salespeople.
Section 181.15 — When Employee Not Entitled To Benefits.
Section 181.16 — Construction Of Sections 181.13 To 181.171.
Section 181.171 — Court Actions; Private Party Civil Actions.
Section 181.172 — Wage Disclosure Protection.
Section 181.1721 — Attorney General Enforcement.
Section 181.275 — Regulating Nurses' Overtime.
Section 181.52 — Interference With Employment.
Section 181.53 — Conditions Precedent To Employment Not Required.
Section 181.535 — Armed Forces Reserves Or National Guard Status.
Section 181.54 — Commissioner Of Human Services, Safety Inspection Work.
Section 181.55 — Written Statement To Employees By Employers.
Section 181.56 — No Statement Given; Burden Of Proof.
Section 181.57 — Application Of Sections 181.55 And 181.56.
Section 181.58 — Surviving Spouse Paid Wages Due.
Section 181.59 — Discrimination On Account Of Race, Creed, Or Color Prohibited In Contract.
Section 181.61 — Medical Examination; Records, Costs.
Section 181.63 — Sale Or Use Of Silicate, Silica Dust, Or Silicon Flour For Certain Purposes.
Section 181.635 — Recruitment; Food Processing Employment.
Section 181.64 — False Statements As Inducement To Entering Employment.
Section 181.645 — Expenses For Background Checks, Testing, And Orientation.
Section 181.66 — Equal Pay For Equal Work Law; Definitions.
Section 181.67 — Wage Discrimination Based On Sex; Protection Of Employees Involved In Proceeding.
Section 181.68 — Actions; Limitations, Damages, Attorney Fees, Parties, Compromises.
Section 181.721 — Construction Bid Equity.
Section 181.722 — Misrepresentation Of Employment Relationship Prohibited.
Section 181.723 — Construction Contractors.
Section 181.73 — Migrant Labor; Health Insurance.
Section 181.74 — Failure Of Employer To Pay Benefits Or Wage Supplements, Penalty.
Section 181.75 — Polygraph Tests Of Employees Or Prospective Employees Prohibited.
Section 181.76 — Disclosure Of Lie Detector Tests Prohibited.
Section 181.78 — Agreements; Terms Relating To Inventions.
Section 181.79 — Wages Deductions For Faulty Workmanship, Loss, Theft, Or Damage.
Section 181.80 — Union Notice Of Injury Or Death.
Section 181.81 — Dismissal For Age; Prohibition; Exceptions; Remedies.
Section 181.82 — Benefits Based On Job Performance Prohibited.
Section 181.83 — Corn Detasselers; Termination Of Employment.
Section 181.84 — Corn Detasselers; Work Conditions.
Section 181.85 — Migrant Labor; Definitions.
Section 181.86 — Employment Statement.
Section 181.87 — Payment Terms.
Section 181.88 — Record Keeping.
Section 181.89 — Civil Actions.
Section 181.90 — Use Wagner-peyser System.
Section 181.91 — Preservation Of Existing Remedies.
Section 181.92 — Leaves For Adoptive Parents.
Section 181.93 — Notice To Employees And Applicants Of Bankruptcy.
Section 181.931 — Definitions.
Section 181.932 — Disclosure Of Information By Employees.
Section 181.933 — Notice Of Termination.
Section 181.934 — Employee Notice.
Section 181.935 — Individual Remedies; Penalty.
Section 181.937 — Reprisals For Failure To Contribute; Civil Action.
Section 181.938 — Nonwork Activities; Prohibited Employer Conduct.
Section 181.939 — Nursing Mothers, Lactating Employees, And Pregnancy Accommodations.
Section 181.940 — Definitions.
Section 181.941 — Pregnancy And Parenting Leave.
Section 181.9412 — School Conference And Activities Leave.
Section 181.9413 — Sick Leave Benefits; Care Of Relatives.
Section 181.942 — Reinstatement After Leave.
Section 181.943 — Relationship To Other Leave.
Section 181.9435 — Division; Investigations, Reports.
Section 181.9436 — Posting Of Law.
Section 181.944 — Individual Remedies.
Section 181.945 — Leave For Bone Marrow Donations.
Section 181.9456 — Leave For Organ Donation.
Section 181.9458 — Authorization For Blood Donation Leave.
Section 181.946 — Leave For Civil Air Patrol Service.
Section 181.948 — Leave To Attend Military Ceremonies.
Section 181.950 — Definitions.
Section 181.951 — Authorized Drug And Alcohol Testing.
Section 181.952 — Policy Contents; Prior Written Notice.
Section 181.953 — Reliability And Fairness Safeguards.
Section 181.954 — Privacy, Confidentiality, And Privilege Safeguards.
Section 181.955 — Construction.
Section 181.957 — Federal Preemption.
Section 181.960 — Definitions.
Section 181.961 — Review Of Personnel Record By Employee.
Section 181.962 — Removal Or Revision Of Information.
Section 181.963 — Use Of Omitted Personnel Record.
Section 181.9631 — Notice Of Employee Rights.
Section 181.964 — Retaliation Prohibited.
Section 181.9641 — Enforcement.
Section 181.966 — Additional Right Of Access To Records.
Section 181.967 — Employment References.
Section 181.970 — Employee Indemnification.
Section 181.9731 — Public Safety Peer Counseling.
Section 181.9732 — Critical Incident Stress Management.
Section 181.974 — Genetic Testing In Employment.